Hedge concentrated positions

With the historic run-up in the equity markets since mid-2020, many investors have overweight and often volatile low-tax basis stock positions in their portfolios. Carapace Financial works closely with advisor clients to customize strategies that hedge downside risk on their concentrated positions, meet risk-return parameters, and provide peace of mind.

Invest for growth and income

The Carapace Buffered Dividend Income Strategy (BDIS) is a hedged “all weather” growth and income strategy that complements traditional 60/40 investment portfolios in any market environment. The approach seeks to provide income from a diversified portfolio of large cap, dividend-paying stocks while protecting against a specific amount of market depreciation on each stock.

The Strategy also preserves potential upside appreciation of the underlying equity portfolio to a capped level. Equity portfolios are customized to align with investor/advisor viewpoints, desired outcomes and risk levels.

Invest for income

Secured put strategies are an attractive way for investors to capture high income with significant downside market risk protection. The Carapace Buffered Premium Income Strategy (BPIS) seeks to generate enhanced income for our clients with a significant downside market risk hedge through the purchase of a 6- to 24-month U.S. Treasury security and the sale of out-of-the-money put options referencing each stock in a diversified portfolio of large-cap stocks.

Invest for growth

Advisor clients can also utilize Carapace Financial’s customized options strategies to replicate generic market-linked notes and ETFs, or to reduce downside market risk on growth-oriented equity investments.